An AMM DEX for the Cosmos Hub: B-Harvest partners with Tendermint to build a Liquidity SDK Module

Today, the Cosmos ecosystem is more active than ever, and we could not be happier with the progress that is happening throughout development on our core protocols. Recent organizational shifts have proven to be optimal and conducive towards furthering our goals of implementing infrastructure like IBC for cross chain communication; Peggy, our Cosmos <> Eth 2 way peg; as well as Ethermint for implementing the EVM on top of Tendermint. In addition, we have been actively participating in the ever evolving DeFi world. As we are no strangers to much of the evolution of AMM tools such as Balancer, Uniswap, Curve, Mooniswap and even the SushiSwaps of the world, we understand the importance an open source AMM DEX Liquidity Module would bring to the Cosmos Hub and to the entire Cosmos ecosystem. Moreover, we are confident that its contribution will not stop here, but also extend to the entire DeFi world as this design could become the next generation liquidity module for cross chain finance.

What is an AMM DEX Liquidity Module?

The Liquidity Module from an architectural perspective is designed to allow continuous management of liquidity within our proof of stake consensus environment. What this means is that we will be creating a fast finality DEX based on a scalable consensus mechanism toward allowing exchange of assets across blockchains. Further down the roadmap includes:

• IBC integration for interchain connections and exchanges between Cosmos zones
• Interoperability with Ethereum based tokens using our two way peg technology
• Onboarding Ethereum smart contract based systems utilizing Ethermint

Why is an AMM DEX Liquidity Module so important for the Cosmos Hub and for the Cosmos ecosystem?

The intention of a Liquidity Module like this is for it to one day sit on the Cosmos Hub. When you think about it, Cosmos is defining the infrastructure of the Internet of Blockchains. Allowing a DEX Liquidity Module to exist in one form or another on the Cosmos Hub is equivalent to building an interchain bridge between network activity for the Cosmos network and beyond.

“This effort by B-Harvest and Tendermint (AiB) to bring an automated market maker to the Cosmos Hub ensures that the Cosmos Hub will be well positioned to jumpstart DeFi applications in the post Stargate world. The effort fulfills one of the dependencies identified in the ATOM2021 memo.” says Zaki Manian, co-founder of Iqlusion and CEO of PeggyJV.

Tendermint is partnering with B-Harvest to build the AMM DEX Liquidity Module for Cosmos

Tendermint is proud to announce a partnership with B-Harvest, one of the oldest Cosmos contributors in the ecosystem towards building this AMM DEX Liquidity Module. The Liquidity Module is designed around extensive research into existing AMM implementations on Ethereum while optimizing on certain economic incentive systems unique to Cosmos.

“B-Harvest believes that the liquidity module will expand the innovation of DeFi and provide great utility to the Cosmos Network and beyond. We feel a strong responsibility to build, maintain and improve this liquidity module to serve a better token exchange platform to the entire blockchain ecosystem.” Hyung Lee, CEO of B-Harvest

We will be coordinating the production of this Liquidity Module along with upcoming Cosmos Hub development including the work that is currently being done on our Stargate upgrade. With the implementation of this DEX module on the hub, the ecosystem will open up more opportunities for further proposals and tools designed to launch new DeFi zones and applications for Cross Chain Finance.

Roadmap and milestones

Milestone 1

• Finalize detailed specification document
• Build core functions & test the code

Milestone 2

• Coordinate the codebase to work with the Cosmos-SDK Stargate upgrade
• Operate testnet

Milestone 3

• Upgrade to include additional features
• Maintain liquidity module codebase

(As a development estimate, Version 1 of the DEX should be ready to launch by Q1 2021, depending on a successful Stargate upgrade)

“We’ve also been taking into consideration the evolution of yield farming tools that started with Compound and evolved into an ecosystem where Yearn is able to redefine what it means to launch a network. Understanding dynamics between Uniswap and Curve anonymous copycats as well as DEX’s with modified CFMM mechanisms brings a lot of insights into how we think about exchanges. Hybrid AMM and order book based systems also seem to have a place. Our goal is to understand and execute on ways that Cosmos can bring further liquidity into the expanding DeFi world” Brent Xu, Head of Strategic Partnerships at Tendermint

Be on the lookout for further updates as we work towards connecting the future of DeFi with the expanding Cosmos Network. More to come in the coming months, Cosmonauts!

About B-Harvest

B-Harvest is one of the earliest contributors to the Cosmos Network. While running a top 20 validator for the Cosmos network, the development team has a range of specialties including cryptography, algorithmic trading, privacy technology, and scalable node infrastructure. As an industry leader, the team provides guidance around proposals and upgrades to the hub as well as ideas on ways to bring more usable infrastructure into the ecosystem such as Zk roll ups, and Wasm based smart contracts.

About Tendermint Team

The Tendermint team is a studio of developers, project managers, and researchers who act as stewards of the Cosmos network. Founded by the creator of Tendermint consensus, the protocol that powers all things Cosmos network related, the team is dedicated towards supporting the development of tools and products to further enhance the internet of blockchains as it relates to DeFi.